The Tory MP claimed the introduction of local enterprise partnerships to replace Regional Development Agencies would be a positive thing for businesses. His statement came during a meeting with business leaders to discuss how the coalition government aims to drive economic recovery.

Around 30 members of the Coventry and Warwickshire Chamber of Commerce met Mr Pawsey during a breakfast event hosted by the Rugby branch at the Dunchurch Park Hotel. The MP spoke on issues ranging from business rates and simplifying the tax system to cutting red tape for business and the scrapping of RDAs including Advantage West Midlands.

Mr Pawsey said enterprise partnerships would allow the town to forge stronger links with its natural geographical neighbours rather than being reliant on decisions taken in Birmingham – an area he felt Rugby had very little in common with.

During the event, Mr Pawsey also said that he believed small and medium enterprises could act as an ‘engine for growth’ as the UK looks to emerge from high levels of national debt and unemployment.

He added: “I think we have to understand the days of the traditional industries are behind us, they have gone to low income economies and they are never coming back.

“We must find ways to support new businesses and ensure that it is as easy as possible for them to get off the ground.

“That means reducing the amount of legislation companies have to deal with through simplifying unnecessarily complicated things like the payroll system.

“We must also understand the importance of embracing and supporting companies in the area that are moving away from traditional engineering to develop and produce new technologies.”

Members also raised concerns surrounding the level of unoccupied units in the town centre, but Mr Pawsey insisted Rugby was in a strong position compared to towns of a similar size across the country.

He also suggested the planned development of the former BT mast site and the Rugby Gateway could act as a catalyst to attract retailers to the region.

Simon Leech, chairman of the Rugby Chamber, said: “We were delighted that Mr Pawsey took the time to meet with business people from the town and address their concerns in an open forum.”